Etowah superintendent wants funds unearmarked

Published: Thursday, January 22, 2009 at 8:30 p.m.

Last Modified: Thursday, January 22, 2009 at 8:31 p.m.

Financial flexibility.That is the reason Etowah County Superintendent of Education Mike Bailey asked the county’s legislative delegation Thursday to unearmark a portion of the county’s 1-cent sales tax now tagged for capital improvements for schools, so it instead could be used to pay salaries of education personnel.Bailey told the delegation at a meeting also attended by superintendents of the Gadsden and Attalla school systems that flexibility is needed because of proration and threats of increasing red ink to school systems’ budgets.Proration declared by Gov. Bob Riley has cut state education funding by 9 percent, and that figure could go higher.The sales tax has helped build five new high schools in the county and is helping fund the new Etowah High School and Gadsden City High School.Bailey said his system is using the funds for a bond payment of about $1.5 million for school construction.He said the county’s board share from the tax is more than its annual bond payment. Some of those funds have been used for construction and maintenance in the system, but not all the funds have been spent.Bailey would like to use $1 million of the $1.56 million in capital funds remaining to offset the effects of proration. He said the change would help his system pay 19 teacher units that otherwise could be lost.“We’re not milking this thing dry,” Bailey said. “We’re leaving some in there so if we do have some unexpected maintenance cost, we’ll have some in there.”At 9 percent proration, according to Bailey, the Etowah County system would lose $4.75 million in state funding this year.The three schools systems in the county and Gadsden State Community College receive just less than 50 percent of the 1-cent sales tax that brought in just more than $10 million last year.Schools can use the funds for capital improvements, maintenance equipment or supplies, according to the current legislation.Bailey reiterated that he was asking for “flexibility” to be able to use the funds for salaries of system employees. He said the average salary and benefits for a teacher is $52,312.45. The change would help cover salaries not covered by what his system will receive in state funds.“We can’t cut enough thermostats down, we can’t save enough on utilities, and we can’t save enough on employee costs this year,” Bailey said.The Etowah County system started with a $5 million reserve this year, and Bailey said that is dwindling. He said if the change isn’t approved, the system most likely will expend all the reserve.That would mean beginning the next school year without any reserve, which is needed in the event of an emergency.Bailey said he wouldn’t oppose a cap on the funds being used for salaries, but said “we’re going to need everything we need to operate.”Gadsden Superintendent of Education Ed Miller and Attalla Superintendent Danny Golden said while their systems likely would not take advantage of the change if approved this year, they thought it was a good idea.Rep. Jack Page, D-Gadsden, said allowing the funds to be used for salaries should only be employed when proration has been declared by the governor. He said the funds would not be used past proration and should be used for salaries of certified personnel.“I think it would be a good tool for the different systems to have,” Page added.Rep. Blaine Galliher said the schools have done a good job with fiscal management and that residents need to understand the funds would not be used for central office personnel but for teachers.He said he wanted to know all the options that are available.Page said there also should be a “cap” on how much of the funds could be used. In a draft bill he had prepared, there is a 30 percent cap, but Page said that was just a suggestion made without research.Sen. Larry Means, D-Attallla, said the change would allow superintendents to do something to keep needed jobs.Rep. Craig Ford, D-Gadsden, said he did not mind the change as long it would only go into effect when proration is declared by the governor.

Financial flexibility.<br />That is the reason Etowah County Superintendent of Education Mike Bailey asked the county&rsquo;s legislative delegation Thursday to unearmark a portion of the county&rsquo;s 1-cent sales tax now tagged for capital improvements for schools, so it instead could be used to pay salaries of education personnel.<br />Bailey told the delegation at a meeting also attended by superintendents of the Gadsden and Attalla school systems that flexibility is needed because of proration and threats of increasing red ink to school systems&rsquo; budgets.<br />Proration declared by Gov. Bob Riley has cut state education funding by 9 percent, and that figure could go higher.<br />The sales tax has helped build five new high schools in the county and is helping fund the new Etowah High School and Gadsden City High School.<br />Bailey said his system is using the funds for a bond payment of about $1.5 million for school construction.<br />He said the county&rsquo;s board share from the tax is more than its annual bond payment. Some of those funds have been used for construction and maintenance in the system, but not all the funds have been spent.<br />Bailey would like to use $1 million of the $1.56 million in capital funds remaining to offset the effects of proration. He said the change would help his system pay 19 teacher units that otherwise could be lost.<br />&ldquo;We&rsquo;re not milking this thing dry,&rdquo; Bailey said. &ldquo;We&rsquo;re leaving some in there so if we do have some unexpected maintenance cost, we&rsquo;ll have some in there.&rdquo;<br />At 9 percent proration, according to Bailey, the Etowah County system would lose $4.75 million in state funding this year.<br />The three schools systems in the county and <a href="http://www.gadsdentimes.com/section/TOPIC0201/"><b>Gadsden State</b></a> Community College receive just less than 50 percent of the 1-cent sales tax that brought in just more than $10 million last year.<br />Schools can use the funds for capital improvements, maintenance equipment or supplies, according to the current legislation.<br />Bailey reiterated that he was asking for &ldquo;flexibility&rdquo; to be able to use the funds for salaries of system employees. He said the average salary and benefits for a teacher is $52,312.45. The change would help cover salaries not covered by what his system will receive in state funds.<br />&ldquo;We can&rsquo;t cut enough thermostats down, we can&rsquo;t save enough on utilities, and we can&rsquo;t save enough on employee costs this year,&rdquo; Bailey said.<br />The Etowah County system started with a $5 million reserve this year, and Bailey said that is dwindling. He said if the change isn&rsquo;t approved, the system most likely will expend all the reserve.<br />That would mean beginning the next school year without any reserve, which is needed in the event of an emergency.<br />Bailey said he wouldn&rsquo;t oppose a cap on the funds being used for salaries, but said &ldquo;we&rsquo;re going to need everything we need to operate.&rdquo;<br />Gadsden Superintendent of Education Ed Miller and Attalla Superintendent Danny Golden said while their systems likely would not take advantage of the change if approved this year, they thought it was a good idea.<br />Rep. Jack Page, D-Gadsden, said allowing the funds to be used for salaries should only be employed when proration has been declared by the governor. He said the funds would not be used past proration and should be used for salaries of certified personnel.<br />&ldquo;I think it would be a good tool for the different systems to have,&rdquo; Page added.<br />Rep. Blaine Galliher said the schools have done a good job with fiscal management and that residents need to understand the funds would not be used for central office personnel but for teachers.<br />He said he wanted to know all the options that are available.<br />Page said there also should be a &ldquo;cap&rdquo; on how much of the funds could be used. In a draft bill he had prepared, there is a 30 percent cap, but Page said that was just a suggestion made without research.<br />Sen. Larry Means, D-Attallla, said the change would allow superintendents to do something to keep needed jobs.<br />Rep. Craig Ford, D-Gadsden, said he did not mind the change as long it would only go into effect when proration is declared by the governor.